Mike Larson | Editor-in-Chief
Can ANYTHING stop the semiconductor stocks? They’re on one of their most powerful runs in years – with one juggernaut in particular standing out this week!
Just look at the MoneyShow Chart of the Day. It’s a weekly chart of Texas Instruments Inc. (TXN) over the last five years. The stock surged as much as 19% yesterday, its biggest one-day rally in a quarter century!
A Texas-Sized Move in “Texan”
Source: TradingView
An incredibly bullish outlook drove the rally. TI said it would generate $5 billion to $5.4 billion in Q2 sales, far exceeding the $4.8 billion that analysts expected. CEO Haviv Ilan said demand was strong across multiple divisions and geographies, rather than confined to one or two product lines.
TI is more sensitive to manufacturing, industrial, and automotive demand than other chip stocks. It doesn’t make the kind of high-end chips that AI darlings like Nvidia Corp. (NVDA) do.
But it’s still benefiting from the AI boom. That’s because it sells chips that go into data center-related equipment, like gear that regulates power supplies. Sales in that division surged 90% year-over-year in Q1.
Bottom line? TI is now up around 60% year-to-date. The iShares Semiconductor ETF (SOXX) is up 40% YTD. And both are leaving the SPDR S&P 500 ETF Trust (SPY) – up only 3%-and-change – in the dust. Just like strength in transports by the way, strength in chips is something you want to see if you’re a market bull!
Chip stocks are ripping again, and it’s not just the usual names. AI demand is lifting everything, from legacy players to the biggest winners, while data center spending is getting so aggressive it’s forcing layoffs across big tech. Get the whole scoop in my MoneyShow Video Market Minute!
Added to Dallas: Our Two-Hour FREE Pre-Show Event!
We’ve got exciting news about our 2026 MoneyShow Masters Symposium Dallas! We’ve been hard at work adding MORE bells and whistles to the program – and we can finally take the wraps off one of them today.
You can now join us for a special Pre-Show Trading Event in the morning on Thursday, May 14. Featuring experts like Michael Lee, Sydney Armani, Merlin Rothfeld, and Kevin Davitt, this two-hour event will cover promising trading opportunities and strategies...and it’s 100% FREE to attend. Simply tap this button to sign up...
Earlier in April, I highlighted the exploding Neocloud/AI infrastructure theme and flagged Nebius Group NV (NBIS) as one of the highest-conviction names on my watchlist. Now I’m following up on this trade because it’s playing out like the true Five Star Pattern that it is, notes Danielle Shay, editor of Five Star Trader.
👉 TICKER: SPX
Why is the market ignoring the risk arising from the shuttering of the Strait of Hormuz? Because the supply shock has been buffered, the market has already done the math, and traders have moved on. What's replacing geopolitics as the driver? Earnings, writes Lance Roberts, editor of the Bull Bear Report.
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